Mitsubishi UFJ Financial Group Inc. climbed to its highest level in a week after capital constraints at the world's two biggest mortgage companies were eased and the Federal Reserve extended credit to non-banks. Tokyo Electric Power Co. gained after the price of crude fell.

"The concerns that major firms could have bigger losses, even go broke, have calmed down a bit," said Kim Ki Bong, chief investment officer at CJ Asset Management in Seoul. "We're seeing a relief rally."

The index, down 14 percent this year, has risen for only two of the 12 weeks in 2008 on concern the U.S. will fall into a recession amid losses tied to the country's subprime-mortgage industry. Stocks on the index were valued at 14 times earnings last week, the lowest in at least five years.

Markets in Hong Kong, Australia and Singapore were shut for holidays. Trading on the Tokyo Stock Exchange was the lowest this year.

Mitsubishi Heavy Industries Ltd. climbed after a newspaper said it is close to commercial production of Japan's first passenger jet. Toshiba Corp., Japan's largest chipmaker, dropped after cutting its profit forecast.